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Posts from ‘April, 2011’

Shell’s S. Africa Shale Plan Should Be Halted, Lawyers Say

April 6 (Bloomberg) — Royal Dutch Shell Plc’s application to start shale-gas exploration in South Africa’s Karoo region should be terminated because it lacks sufficient information for regulators to assess it properly, Havemann Inc. attorneys said.

Shell, planning to drill about 24 wells in an area of about 90,000 square kilometers (34,749 square miles), faces opposition to its proposed hydraulic fracturing, known as fracking, in the sheep and game farming region, an arid stretch across northwest South Africa, from the Treasure the Karoo Action Group, which has 3,000 supporters and commissioned Havemann to compile the report.

“Information about the proposed activities is incomplete; information about sources of water is absent; information on chemicals to be used in fracking is missing,” the Cape Town- based specialist attorneys’ firm said.

The government’s capacity to evaluate and enforce compliance by Shell “is in serious doubt,” Havemann also said in the report, adding that the Department of Water Affairs “has less than a third of the officials it needs to enforce compliance.” Linda Page, a spokeswoman for the department, didn’t immediately respond to a message left on her mobile phone.

Shell said last month it expects the national petroleum agency to decide whether to award the three permits it applied for in three different areas by or on Aug. 12. Dennis Matsane, a spokesman for the company in South Africa, didn’t immediately respond to a message left on his mobile phone.

Shale formations consist of dense rock that can be broken apart to release trapped oil and gas. Advances in directional drilling and so-called hydraulic fracturing techniques have increased production from shale fields. Hydraulic fracturing injects water, sand and chemicals into the rock to crack it.

–Editors: Antony Sguazzin, Karl Maier

SOURCE ARTICLE

Refugee from Shell slams fracking

Nigerian ‘political and environmental refugee Barry Wuganaale, a member of the Ogoni people from Niger Delta in Nigeria, opposes Shell’s fracking plans. Photo: Michael Walker

April 6 2011

Melanie Gosling

and Grace Huang

WHEN Nigerian political refugee Barry Wuganaale heard on television that Shell would be fracking for gas in the Karoo, he nearly choked on his dinner.

“I was shocked. I didn’t need to think twice about opposing this. South Africa has no experience of Shell operating upstream. You know them at the pumps here, but not drilling,” Wuganaale said yesterday. “I am from the Ogoni people in the Nigeria. We know Shell. What Shell has done to the Ogoni people and to the Nigerian state, I don’t wish to be repeated on anyone.”

Describing himself as a “environment and political refugee”, Wuganaale formed the Ogoni Solidarity Forum in Cape Town. He was among about 50 protesters who gathered at Parliament yesterday to mark the handing over of the Treasure the Karoo Action Group’s written objection to Shell’s proposed fracking for gas in the Karoo. The proposal has encountered widespread opposition because of the risk to the environment.

Officials from President Jacob Zuma’s office received the document, which calls for an immediate halt to any such plans. Wuganaale and Christiaan Kargbo, also an Ogoni, carried a banner that read: “Together we can defeat oil multinationals” and “Environmental right is a human right”, with a photograph of Nigerian author and activist Ken Saro-Wiwa, who strongly opposed Shell’s activities in the Niger Delta. Saro-Wiwa was executed with nine other people by the Nigerian government in 1995. Wuganaale said the Ogoni people, believing Shell was behind the execution of Saro-Wiwa and the others, took legal action against the company in the United States under an American law that allows a company registered there to be charged for crimes committed in other countries.

“Shell knew they would be rubbished in court, so they settled out of court, and paid $15.5 million to the 10 families of the deceased. But the destruction of the environment, the health hazard, the poisoning of the atmosphere, these things Shell has not talked about.”

Another protester, Marilyn Lilley, said so much was known about the harmful consequences of fracking that she did not understand how the Shell initiative has got this far.

“They need a competent person in the government to assess everything. After they consider all the known scientific data, I believe it won’t go ahead. It could lead to the … destruction of the Karoo.”

Adrienne van der Merwe, born in the Karoo, said friends who farmed or owned land there worried most about the potential pollution and water shortage fracking could cause.

“Even if it will create jobs, they’re relatively short-term and will last maybe 15 years. But then the damage is done.”

Lawyer and environmental activist Lewis Pugh said: “Shell will tell you this is all clean and green. That is utter nonsense. It is lethal.”

The group’s document calls for a moratorium on all fracking as there is no national policy to define fracking or capacity to enforce compliance with conditions of approval.

The Cape Times asked Shell to comment, but had not received a reply by the time of going to press.

SOURCE ARTICLE

STANDING UP TO GOLIATH: Opposition to Shell’s gas exploration in South Africa

STANDING UP TO GOLIATH”: The People of the Karoo in South Africa oppose Shell’s gas exploration by Lewis Pugh

Lewis Pugh, a lawyer, and an environmentalist that uses swimming to raise awareness on the impact of climate change

I want to take you back to the early 1990′s in this country. You may remember them well.  Nelson Mandela had been released.  There was euphoria in the air.  However, there was also widespread violence and deep fear. This country teetered on the brink of a civil war.  But somehow, somehow, we averted it.  It was a miracle! And it happened because we had incredible leaders.  Leaders who sought calm. Leaders who had vision.  So in spite of all the violence, they sat down and negotiated a New Constitution.

I will never forget holding the Constitution in my hands for the first time. I was a young law student at the University of Cape Town.  This was the cement that brought peace to our land.  This was the document, which held our country together.  The rights contained herein, made us one. I remember thinking to myself – never again will the Rights of South Africans be trampled upon.

Now every one of us – every man and every woman – black, white, coloured, Indian, believer and non believer – has the right to vote.  We all have the Right to Life.  And our children have the right to a basic education.  These rights are enshrined in our Constitution. These rights were the dreams of Oliver Tambo.  These rights were the dreams of Nelson Mandela.  These rights were the dreams of Mahatma Gandhi, of Desmond Tutu and of Molly Blackburn.  These rights were our dreams. People fought ­ and died ­ so that we could enjoy these rights today.

Also enshrined in our Constitution, is the Right to a Healthy Environment and the Right to Water. Our Constitution states that we have the Right to have our environment protected for the benefit of our generation and for the benefit of future generations. Fellow South Africans, let us not dishonour these rights.   Let us not dishonour those men and women who fought and died for these rights.  Let us not allow corporate greed to disrespect our Constitution and desecrate our environment.


Lewis Pugh holding up a copy of the South African constitution, a document which the Treasure the Karoo Action Group (TKAC), wish to use to stop Shell from their land

Never, ever did I think that there would be a debate in this arid country about which was more important ­ gas or water?  We can survive without gas. We cannot live without water. If we damage our limited water supply ­ and fracking will do just that ­ we will have conflict again here in South Africa.  Look around the world. Wherever you damage the environment you have conflict.

Fellow South Africans, we have had enough conflict in this land ­ now is the time for peace. A few months ago I gave a speech with former President of Costa Rica. Afterwards I asked him “Mr President, how do you balance the demands of development against the need to protect the environment?” He looked at me and said “It is not a balancing act.  It is a simple business decision.  If we cut down our forests in Costa Rica to satisfy a timber company, what will be left for our future?”

But he pointed out “It is also a moral decision.  It would be morally wrong to chop down our forests and leave nothing for my children and my grandchildren.” Ladies and gentlemen, that is what is at stake here today: Our children’s future.  And that of our children’s children.

There may be gas beneath our ground in the Karoo.  But are we prepared to destroy our environment for 5 to 10 years worth of fossil fuel and further damage our climate? Yes, people will be employed ­ but for a short while.  And when the drilling is over, and Shell have packed their bags and disappeared, then what?  Who will be there to clean up?  And what jobs will our children be able to etch out?

Now Shell will tell you that their intentions are honourable.  That fracking in the Karoo will not damage our environment.  That they will not contaminate our precious water.  That they will bring jobs to South Africa. That gas is clean and green.  And that they will help secure our energy supplies. When I hear this ­ I have one burning question.  Why should we trust them? Africa is to Shell what the Gulf of Mexico is to BP.

Shell, you have a shocking record here in Africa.  Just look at your operations in Nigeria.  You have spilt more than 9 million barrels of crude oil into the Niger Delta.  That’s twice the amount of oil that BP spilt into the Gulf of Mexico.

You were found guilty of bribing Nigerian officials ­ and to make the case go away in America – you paid an admission of guilt fine of US$48 million. And to top it all, you stand accused of being complicit in the execution of Nigeria’s leading environmental campaigner ­ Ken Saro-Wiwa and 8 other activists.  If you were innocent, why did you pay US$15.5 million to the widows and children to settle the case out of Court?


Lewis Pugh, receiving a standing ovation after his speech at public hearing which Shell called to present their Environmental Management Plan for Gas Fracking in the Karoo, at Kelvin Groove, Cape Town on the 25th of March 2011

Shell, the path you want us to take us down is not sustainable.  I have visited the Arctic for 7 summers in a row.  I have seen the tundra thawing. I have seen the retreating glaciers. And I have seen the melting sea ice. And I have seen the impact of global warming from the Himalayas all the way down to the low-lying Maldive Islands. Wherever I go ­ I see it.

Now is the time for change.  We cannot drill our way out of the energy crisis.  The era of fossil fuels is over.  We must invest in renewable energy.  And we must not delay! Shell, we look to the north of our continent and we see how people got tired of political tyranny.  We have watched as despots, who have ruled ruthlessly year after year, have been toppled in a matter of weeks.

We too are tired.  Tired of corporate tyranny.  Tired of your short term, unsustainable practices. We watched as Dr Ian Player, a game ranger from Natal, and his friends, took on Rio Tinto (one of the biggest mining companies in the world) and won. And we watched as young activists from across Europe, brought you down to your knees, when you tried to dump an enormous oilrig into the North Sea.

Shell, we do not want our Karoo to become another Niger Delta. Do not underestimate us.  Goliath can be brought down.  We are proud of what we have achieved in this young democracy ­ and we are not about to let your company come in and destroy it.

So let this be a Call to Arms to everyone across South Africa, who is sitting in the shadow of Goliath: Stand up and demand these fundamental human rights promised to you by our Constitution.  Use your voices – tweet, blog, petition, rally the weight of your neighbours and of people in power. Let us speak out from every hilltop.  Let us not go quietly into this bleak future. Let me end off by saying this – You have lit a fire in our bellies, which no man or woman can extinguish.  And if we need to, we will take this fight all the way from your petrol pumps to the very highest Court in this land.  We will take this fight from the farms and towns of the Karoo to the streets of London and Amsterdam.  And we will take this fight to every one of your shareholders.  And I have no doubt, that in the end, good will triumph over
evil.

RELATED ARTICLE: Refugee from Shell hell slams fracking

Alleged ‘rape’ remarks by gardaí investigated

Two separate investigations are under way into Garda behaviour in relation to Shell to Sea protestors in Mayo.

Updated: 22:09, Tuesday, 5 April 2011

Two separate investigations are under way following allegations that remarks of a sexually suggestive and disturbing nature were made by gardaí after the arrest of two women involved in an anti-Corrib Gas protest last week.

A recording where gardaí speak about rape in relation to one of two female campaigners they had just arrested was released by the protest group last night.

The recording is believed to have occurred inadvertently after gardaí took a video camera from the women.

The Garda Ombudsman Commission said it had not received a report about the incident in Co Mayo, but said it was in the public interest to investigate it.

A senior garda officer from outside the Mayo region has been appointed to carry out a separate investigation.

The two women had travelled to Mayo to support the Shell to Sea protest.

One of them had climbed onto a tractor; the other was filming her with a video camera.

Gardaí arrested both of them, put them in a patrol car and took them to Belmullet Garda Station. The camera was placed in a second patrol car.

Last night, Shell to Sea said the gardaí did not realise it was still recording.

When it was handed back to the two women it contained details of a conversation between the gardaí in the second patrol car.

A Shell to Sea spokesperson said the alleged remarks made by the gardaí were shocking and disturbing.

Sinn Féin had earlier requested that the commission launch an inquiry into alleged threats.

Garda Commissioner Martin Callinan has tonight re-emphasised the importance of combining professionalism with sensitivity and compassion in the investigation of sexual crimes.

In a statement, Mr Callinan said: ‘I want the message to go out to the community and particularly to victims of sexual crime that they should report those crimes to gardaí who can take the necessary steps to vindicate and protect their rights and I want to assure them that they will be met with compassion and sensitivity.’

SOURCE ARTICLE

Harrington undertakes not to interfere with Shell activities

Tuesday, 05 April 2011 14:00

Well-known Shell to Sea activist Maura Harrington has given an undertaking to the Circuit Court not to interfere with workers employed by Shell in their operations at Glengad.

The undertaking was given by her defence on behalf of Maura Harrington, Doohoma, Belmullet, who had custodial sentences imposed in the District Court unconditionally suspended by Judge Raymond Groarke at Ballina Circuit Court on Tuesday last.
The offences related to activities back in 2008 and 2009 when Ms. Harrington was convicted of careless driving, trespassing with intent at Glengad and using a scissors to criminally damage netting at Glengad.

The trespass and criminal damage convictions were appealed on severity only.

Having heard the evidence in the appeal at Castlebar Circuit Court in February of last year, Judge Groarke disqualified Ms. Harrington from driving for two years and fined her €200.

Sentencing on the criminal damage and trespassing charges were adjourned for a year on the undertaking that she would be of good behaviour and not disturb activities of Shell or its employees.

She had adhered to that undertaking, Judge Groarke was told, and as result he unconditionally suspended all custodial sentences. The two-year driving ban remains in place.

SOURCE ARTICLE

Kazakhstan to delay work on vast oil field by three more years

Kazakhstan is planning a three-year halt to work on the main phase of the super-giant Kashagan oil field development, as international oil companies Royal Dutch Shell and Exxon Mobil fight to convince the country’s oil ministry to back a simplified design, which would slash costs by $18bn (£11bn) to $50bn.

The Kazakhs are considering shelving the new simplified design, and keeping the field producing at its initial rate of 375,000 barrels per day (bpd) for at least three years. Photo: Getty

Richard Orange
By Richard Orange, in Astana 11:30PM BST 04 Apr 2011

The delay, if approved, could push the start of full production from the field well into the next decade, making it all but impossible for Shell and its partners to make an acceptable profit before the contract expires in 2037.

The Kazakhs are considering shelving the new simplified design, and keeping the field producing at its initial rate of 375,000 barrels per day (bpd) for at least three years, after which the NCOC consortium could use a greater understanding of the geology to produce a better design for the second phase, when production is expected to hit 1.5m bpd.

When the oil field was discovered in 2000, it was the biggest find in more than 30 years, with reserves of 9bn-13bn barrels. But under Italy’s ENI, the company chosen to operate the project, costs soared to $136bn.

The start date also slipped from the target of 2005.

NCOC’s new design for the field was informally presented to the Kazakhs at the end of last year. An official said Kazakh oil ministry officials were unhappy with NCOC’s decision to use a new geological model of the field, which was presented last month by Exxon.

“Frankly, we laugh at their model,” the official said. “It’s based on too many assumptions and the data is very doubtful.”

Over the next three months, the consortium will present their model of how oil will flow as it is produced, after which the Kazakhs will make a final decision on the freeze.

Shell, Exxon Mobil, Total and KazMunaiGaz all have a 16.81pc stake in the field. ConocoPhillips has 8.4pc, and Japan’s Inpex 7.56pc.

SOURCE ARTICLE

Senior garda to investigate treatment of Corrib protesters

LORNA SIGGINS, Western Correspondent

A SENIOR garda officer has been appointed to investigate the treatment of two women who were arrested during protests over the Corrib gas project late last week.

Members of the force were inadvertently recorded on a video camera they had earlier confiscated joking about threatening to deport and rape one of the women who had refused to give her name to officers.

The video camera was not fully switched off after it was seized by gardaí and it recorded exchanges between several gardaí in the vehicle in which they were travelling.

The two women were arrested on a public road last Thursday about 30 minutes after one of them had been taken down from the roof of a tractor hired for Shell’s preparatory work on the Corrib gas pipeline at Aughoose.

Both women were released without charge.

They are upset about the exchanges that were recorded and say they were manhandled by several officers during their arrest near the Shell compound for the new Corrib gas pipeline route in north Mayo.

The woman who was carrying the video camera says she had her arms forced until she dropped the camera, and sustained bruising. Her colleague says she was treated in an “unnecessarily physical fashion”.

Both women said they wished not to be named, and neither wanted to comment on the record on the incident.

Supt Pat Diskin of Belmullet Garda station said a senior garda from outside the division had been appointed to “establish the facts and report on the matter”.

The women were arrested for public order-related offences, and a file is being prepared for the Director of Public Prosecutions.

An academic at NUI Maynooth, where one of the women is studying, has condemned as “outrageous” the content of some recorded conversation.

The camera on which the exchanges were recorded is believed to have been the property of the college.

It was some hours after their release that the women discovered their camera, which was returned to them, had not been switched off.

It was in the possession of gardaí leaving the scene in a separate car, and during the journey it had recorded exchanges between several gardaí.

One garda can be heard on the tape saying that one of the women “sounds like a Yank or Canadian”. Another garda said: “well, whoever, we’ll get immigration f***ing on her.”

A more senior garda picked up the conversation, saying “she refused to give her name and address and [was] told she would be arrested”.

“And deported,” his colleague continued. “And raped,” the more senior garda said.

The conversation continued in jocular fashion, with the more senior garda saying: “Give me your name and address or I’ll rape you.”

Amid some laughter, another garda said: “Hold it there, give me your name and address there, I’ll rape you.”

“Or I’ll definitely rape you,” the more senior garda responded.

The 37-minute recording also features differences of opinion between the gardaí in the car over use of equipment and training to deal with protests.

One garda expressed concern about responsibility in court proceedings if a protester was injured during removal, and it transpired that there was insufficient equipment or training. His senior disagreed, and said it was a matter of “common sense”.

Dr Bríd Connolly, lecturer in NUI Maynooth’s adult and community education department, confirmed that one of the women arrested was a student at the college.

“This recording is an affront to women, an affront to freedom to protest, and rape is not a joking matter,” Dr Connolly said.

“How can women who have been assaulted have any confidence in the Garda if this is the sort of attitude that prevails?

“It undermines the work done with the Garda by rape crisis centres and Women’s Aid, and takes us back 40 to 50 years,” Dr Connolly added.

SOURCE ARTICLE

LINK TO TRANSCRIPTS OF RECORDINGS

COMMENT ADDED TO ARTICLE

stpadraig on Apr 5th, 2011 at 9:25 am

This is disgraceful. I have a young daughter that I reared with strong morals. She goes out to exercise her right to protest against various wrongs – including this unscrupulous and underhanded give away of natural resources.

The thought of a vicious, unruly and unlawful band of thugs, acting as police officers, and putting their filthy hands on my daughter is just too much to bear.

Carefully chosen men for the job I guess – this is NOT a free country,

Pádraig Ó Braonáin
Óán Mór
Galway

Unrest Spreading to Petroleum Development Oman

By John Donovan

Printed below is a self-explanatory email sent this afternoon to Mr. Michiel Brandjes, Company Secretary & General Counsel Corporate, Royal Dutch Shell Plc.

From: John Donovan <john@shellnews.net>
Date: 4 April 2011 15:01:00 GMT+01:00
To: michiel.brandjes@shell.com
Subject: Middle East Unrest Spreading to Oman? Demands made to Oman Government

Dear Mr. Brandjes

Printed below is a letter from staff representatives of Petroleum Development Oman (PDO Oman), a company which for several decades has been closely associated with Shell.

As you can see, demands are addressed to HE Dr. Mohd Al Rumhi, the Omani Minister for Oil & Gas.

We have reason to believe that the letter is genuine and consequently have published it along with this email to you.

If you establish that it is a hoax, then we will take the appropriate action.

However, as indicated, we believe it is perfectly genuine.

If I receive no response within 24 hours, I will take that as confirmation.

Best Regards
John Donovan

21-March-2011

HE Dr. Mohd Al Rumhi

The Minister of Oil & Gas

Assalamu Alaikum wa Rahmatullahi wa Barakatuh,

We, “ The interim group of Omani staff representatives”, would like to communicate our appreciation to Your Excellency for giving us the opportunity to meet with you on Wednesday 23rd March 2011.

Over past few days and weeks, PDO Omani staff felt that they can no longer tolerate their deep-routed, years-old issues not being addressed by the company.  As a result, we came out in peaceful gatherings to seek hi-level acknowledgment of the legitimacy of our issues.  We were eternally grateful for Your Excellency’s words to the gathering on 14/9 which not only assured the gathered that their issues will be heard, but concrete measures will be taken to address them.  The gathered understood Your Excellency’s message that some issues can be resolved immediately, while others need planning and time and others yet may not be achievable in the foreseeable future.

As elected representatives of the 500+ PDO Omani staff gathered both on 9/3 and 14/3, we have collated the issues and demands from those gatherings and classified them into six themes.  For each theme we describe the relevant issues and the associated demands focusing mainly on Quick-Wins and Hi Impact demands.  The rest we expect to be followed up by a more representative trade union once it is elected.

On the basis of this, these are the top demands that we are putting forward and asking for Your Excellency’s support & acceptance on:

1.     Omani Staff Packages are to be revised with immediate effect to be in-line with expatriate packages as stipulated by Article 11 of the Omani Manpower Law.

2.     Staff shall be eligible for Normal Retirement when completing 30 years of pensionable service.  Pension benefits after completing 30 years of pensionable service shall be set to current Company-set maximum of 80% of basic salary at retirement regardless of age.

3.     Provision of comprehensive health insurance for Omani staff including their immediate family members.

4.     All Omani staff shall become eligible to receive a housing loan or a top-up adjustment to their existing loan up to the current ceiling of Sixty Thousand Omani Rials.

5.     PDO to introduce “Replacement Plans” for all expatriates ensuring full knowledge transfer to Omani’s. In addition, policies governing expatriate contracts shall be changed such that these contracts are not renewable and that an expatriate cannot be replaced with another expatriate.

6.     PDO to define categories of lower-skill labour (e.g. Data entry, well-operators, fork-lift operators … etc.) and skilled-labour (e.g. contract engineers, IT personnel … etc.) that are limited to Omanis.

7.     Empower and enhance the role of the State Financial and Administration Audit Institution to improve the transparency, accountability and efficiency across the Company.

We trust that Your Excellency, as we have been accustomed by you, will meet us with an open mind and an open heart.  We expect that by the end of our meeting that we will be told which of these demands can be achieved immediately and a date by which we can hear back on what are Your Excellency’s plans and timelines for the rest including those detailed in the attachment

Shell says asset disposal not exit strategy

By Bassey Udo

April 4, 2011 11:32AM

Shell Petroleum Development Company (SPDC) of Nigeria Limited at the weekend declared that its decision to dispose of some of its marginal acreages in Nigeria to some indigenous exploration and production operating companies should not be construed to mean a grand plan to leave the country in the near future.

The company has already offered to dispose of about four of its onshore oil blocks located in oil mining leases (OMLs) 30, 34, 40 and 42, reputed to hold a combined reserves of about 2 billion barrels of crude, as part of its strategic plan to reduce the scope of its onshore operations in the Niger Delta region as a result of increase of attacks on its facilities.

The company’s Managing Director/ Country Chairman, Mutiu Sunmonu (right), told NEXT at the formal sealing of a sale and purchase agreement (SPA) with Elcrest Exploration and Production Nigeria Limited (Elcrest) for the sale of 45 percent equity in OML 40 in Abuja that the company is not contemplating its exit from Nigeria any time soon. “This (the sale of some of its assets) is not an exit strategy for Shell in Nigeria. What we are doing is consolidating our operations to strengthen even our future in Nigeria. We are in Nigeria for the long haul. Some of these assets are of more value to indigenous companies than the multinationals. The sale of marginal oil fields is an exercise aimed at growing indigenous capacity in the upstream oil and gas industry,” Mr. Sunmonu said.

The agreement with Elcrest, a joint venture company of Starcrest Nigeria Energy Limited and Eland Oil and Gas Limited, both of the Chrome Group, is one of the initial 18 consortia that indicated interest in bidding for the four marginal oil field lined up by the SPDC for sale to indigenous companies with the requisite technical capacity to operate them. Elcrest emerged the winner with an offer of about $154 million. According to the SPDC boss, the SPA for the other three oil blocks is expected to be sealed in the next few weeks following the emergence of Consolidated Oil Limited as preferred bidder for OMLs 30 and 42, with offers of $1.295billion and $700 million respectively, while Niger Delta Petroleum Limited’s bid for OML 34 was not disclosed. Indications are that the company might rake in as much as $2.5billion from the sale of the four acreages. The transaction, which is subject to the final approval of the Nigeria National Petroleum Corporation (NNPC) with controlling stake of 55 percent equity in OML 40, grants Elcrest the right to work with its partners, Starcrest and Eland, in collaborating with the local communities to realize the aspirations of the all stakeholders for a successful development of the resources in the area.

Strategic growth plan

It was gathered that an application for consent has already be dispatched to the NNPC management requesting its permission for the consignors, SPDC and its JV partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company of Nigeria, to go ahead with the assignment of the oil block to Elcrest consortium. “SPDC’s desire is to help grow indigenous companies operating in the country’s oil and gas industry. That is why we have promised to render assistance in whatever form they require within the framework of our agreement to help release the collective aspirations of all stakeholders,” Mr. Sunmonu said.

Chairman, Starcrest Nigeria Energy Limited, Emeka Offor, described the acquisition of equity interest in OML 40 as important to its strategic aspirations to grow the company in line with the Nigerian Content capacity building policy of the Federal Government in the country’s oil and gas industry.

“This acquisition is a cardinal part of the strategic growth plan of Chrome Group as we kick-start the new direction to develop an indigenous oil and gas company in sub-Saharan Africa with a global perspective, and capacity to compete with other operators around the world. We are positioned to champion the cause for local content development in the oil and gas industry in the country,” Mr. Offor said.

SOURCE ARTICLE

Fitch downgrades Shell’s credit rating amid debt concerns

NO, IT’S NOT AN APRIL FOOLS DAY PRANK

1 April 2011:

LONDON (AFP) – Ratings agency Fitch on Friday downgraded Royal Dutch Shell’s long-term credit-worthiness to AA from AA+ due to concerns over the Anglo-Dutch energy giant’s rising debt levels.

“The downgrade reflects the fact that management fundamentally departed from its conservative financial profile with the increase in net debt of around $17 billion in 2009 and $5.6 billion in 2010,” Jeffrey Woodruff, senior director in Fitch’s Energy team, said in a statement.

Downgrades by credit ratings agencies can make it harder for companies to secure competitive rates of interest on their borrowing requirements.

Shell’s share price was flat at 2,264 pence in afternoon trade on London’s FTSE 100 index, which showed a gain of nearly one percent to 5,964.22 points.

Fitch added that its downgrade comes as Shell faces key issues, including its ability to increase oil production and fund its North American energy strategy.

It also occurs as Shell on Friday announced the sale of its refining and distribution activities in Chile to local oil company Quinenco for $614 million (433 million euros).

The move was part of its strategy to consolidate downstream operations into fewer and larger markets. Earlier this week, Shell agreed to sell Britain’s second biggest oil refinery to Indian group Essar for $1.3 billion.

Despite concerns over Shell’s high debt levels, the group managed to double its net profit in 2010, easily outperforming crisis-hit rival BP thanks to cost-cutting, higher oil prices and rising output.

Net profits, adjusted for the value of inventories of oil and gas, rocketed 90 percent to $18.6 billion last year.

SOURCE ARTICLE